ASSIGNMENT 325KM QUESTION NO.16 Global outsourcing has been claimed as one of the major drivers for the globalization of production. Discuss how global outsourcing benefits the firms and why firms choose to engage in outsourcing. Outsourcing can be defined as the way for some firms or companies to help in improving their activities by using the third people or party’s abilities, skills or technology. It is something that is called as outsource. It is legal to be used by the firms or companies who needed it but it is important also to follow the law before doing it. According to Martin Grueber, outsourcing is negatively seen as the loss of jobs, R&D leadership, and competiveness, or positively seen as open innovation, support for industry or …show more content…
The research and development part is very important in every firm’s activities or businesses. It is because, from that it will helps them to improve their businesses and gained many profits from that. In a firm or company, research and development is something that is a must as they can create new thing like products, services and so on. Those thing need to be research well before it can be developed. It is because error might occurred if the firms or companies directly build the new develop products before making the research first. All the research and development or R&D can be improved if they are doing the global outsourcing in their respective firms or companies. Using global outsourcing also helps in achieved cost reduction. Why global outsourcing helps in cost reduction? It is because it has lowered the numbered of manufactured cost needed for their products or services. The cost reduction is very important and a must for the businesses, firms or companies to gain more profit from their activities as they can produce more products or improved their services using cut from the cost reduction. It is a benefit for all the firms and companies that are doing the global …show more content…
Most of their works are very excellent and efficient. Each firm that is using their services will be happy and satisfied as they will follow all the needed requirements by the clients. The consolidation of services that the outsourcing provider gives basically is the most important things, so that the firms or companies know what kind of outsourcing that they are trying to do and how it works. The consolidation of services and operational efficiencies across borders that the outsourcing provider gives are yet the best that they can gives to help their customers. Global outsourcing also helps the firms to find new sources in their activities or businesses. There are few new sources that firms can find if they are doing the global outsourcing. The new sources such as unique materials, low labor cost, new market opportunities and also encourage companies to continuously change in order to improve their flexibility. As we know, global outsourcing means that the firms and companies outsource from other people or companies, or countries to gain something that they do not have. It is a big benefit for them as they can explore new markets to widen their businesses or